ICO News: Coinbase takes further steps to support ICO token

tom-hart
May 23, 2018 2 min read

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Cryptocurrency exchange Coinbase has taken another step toward trading ERC20 tokens by acquiring decentralized relayer Paradex. ERC20 is the Ethereum technical standard that the majority of initial coin offering (ICO) tokens are based on.

Paradex announced the news on its website today, May 23, 2018, adding that its site will be down temporarily while it works to make the integrations with Coinbase.

Paradex’s statement

We know we’ve been a little quiet, but we’ve been hard at work, and we’re incredibly excited to share that Paradex is joining Coinbase!

One year ago this month, we set out to build the best decentralized relayer that empowers users with self-custodianship. A year later, we’re not only extremely proud of what we’ve achieved, but intensely optimistic about where our space is headed and the explosion of opportunity growing each and every day.

It was clear from our first conversations with Coinbase that the excitement and optimism was mutual. Like Coinbase, we believe wholeheartedly in the power of an open financial system; it’s paramount to what we’re working towards at Paradex. In our next steps together, we’ll continue to build out the existing Paradex roadmap and continue to explore the world of decentralization and the amazing opportunities at hand.

While we work to integrate with Coinbase, the Paradex app will be temporarily unavailable, starting today, May 23, at 3pm ET. This doesn’t change our commitment to our users. We’re still working hard to build the best relayer, now with a larger team and more resources.

To stay up-to-date on Paradex, including acquisition news and future product updates, sign up to our mailing list below and follow us on Twitter

About Paradex

Paradex is a self-proclaimed decentralized exchange (DEX). This means no third party gets involved with holding funds and keeping them safe and secure.

Instead, users can use the platform to trade ERC20 tokens direct amongst themselves. Paradex is made possible by the 0x (pronounced “zero x”) protocol.

If it manages to successfully add ERC20 tokens to this list, it will likely give the number of digital assets it carries a significant boost. Thanks to the ICO boom which began last year and shows no sign of letting up, countless ICO tokens, or altcoins, are now available to trade.

SEC warned of securities masquerading as ICOs

However, U.S. regulators are in the midst of clarifying their stance on virtual currencies. As such, a lot of the many exchanges are waiting to support ERC20 tokens.

The U.S. Securities and Exchange Commission (SEC), in March 2018, warned the virtual currency exchanges that some ICO tokens may qualify as noncompliant securities.

As such, any exchange that lists security tokens needs to either register as a national securities exchange or operate under an exemption and set itself up as an alternative trading system (ATS).

Talks between Coinbase and the SEC re this issue are apparently ongoing. So, watch this space…

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